“AirAsia X would like to confirm Azran Osman-Rani’s cessation from the chief executive officer office with effect from 30 January 2015.”
This sentence in the press statement on AirAsia X’s “leadership changes” did not come as a big surprise as speculation of Azran’s departure has been going around for the past few months.
The announcement by the long haul budget arm of AirAsia also put an end to rumours that Robert Milton, former president and chief executive of Air Canada, would possibly step in to take on a senior position in the financially troubled airline. He has been director of AirAsia Bhd since 2013.
Kamarudin Meranun: To spearhead growth of AirAsia group. (Image credit: Tune Insurance)
Instead AirAsia X, as part of its reorganisation exercise, has appointed Datuk Kamarudin Meranun, AirAsia Bhd co-founder, to the newly created role of group CEO, and Benyamin bin Ismail as acting CEO. Both assume their new positions with immediate effect.
Kamarudin will spearhead developing the overarching strategy for the AirAsia X group, which encompasses AirAsia X Berhad, AirAsia X Thailand and Indonesia AirAsia Extra.
Benyamin, who was ex-group head of investor relations for AirAsia, will work with Kamarudin to lead the reorganisation and turnaround exercise to strengthen the company’s balance sheet and to maximise profitability to ensure a stronger financial footing for the company.
“Over the past few months we saw the company facing challenges in a difficult environment. After a thorough review, a decisive turnaround plan was initiated to put the company on substantially better financial footing to ensure we bring back confidence to the market,” Kamarudin said.
He is confident the company will uphold its leadership position in the long haul, low-cost market with the turnaround plan in place.
The AirAsia X board and the co-founders would also be executing a rights issue and would be fully underwriting their portion in support of the company, Kamarudin added.
“We have a solid company here and together with Ben, who has a thorough understanding of the AirAsia and AirAsia X business model and the culture that has made AirAsia a leading airline, I am truly confident in turning this company around and bringing it to profitable growth.”
Benyamin is also confident that AirAsia X would continue to expand into new markets to build an “unbeatable regional network” and “cement our position as the airline of choice across this region.”
Benyamin joined AirAsia Berhad in 2010, heading up the Investor Relations team, and most recently played the role group head of corporate Development, Implementation and Investor Relations. He also managed regional IR, communicating the AirAsia Group strategy, growth and outlook to the investor community.
Tourist at Coolangatta Airport on AirAsia X’s inaugural flight to the Gold Coast (Image credit: AirAsia X).
AirAsia X has been helmed by Azran since 2007 when he was appointed CEO. He led the start-up team that developed the business plan, raised capital, secured relevant licenses and approvals, acquired aircraft and launched AirAsia X’s first inaugural flight to the Gold Coast, Australia in November 2007.
His contract was extended and was to expire on 4 July 2016.
The airline had an initial good run. But competition from regional airlines, high costs, rising global oil prices, and the drop in Chinese traffic due to the mysterious disappearance of Malaysia Airlines MH370 enroute from Kuala Lumpur to Beijing, were some of the factors that affected its performance.
For the three months ending 30 September 2014 AirAsia X posted net loss of RM210.9 million (US$58million), its fourth consecutive quarterly loss.
Its share prices have also dropped sharply. The last traded price was 65.5 sen. from the IPO price of RM1.25 a share (company was listed on Malaysia’s Stock Exchange in 2013). Trading in the shares of AirAsia X was suspended on 30 January for the announcement of the management changes.
The Malaysian media also reported that AirAsia X was facing financial constraints and having problems paying the salaries and allowances of its staff, leading AirAsia group chief executive officer, Tan Sri Tony Fernandes, to rubbish these reports. (Read story here).
Azran has not made any comments as to what his future plans would be. But media reports said he could be returning to the management consultancy industry. He was formerly an associate partner of McKinsey & Company, an international management consultancy, where he co-led its Southeast Asia corporate finance & strategy practice.
Or he could join another airline.
• Featured image credit (AirAsia X aircraft): AirAsia X
